Consumer Price Index

A consumer price index (CPI) measures changes in the price level of consumer goods and services purchased by households. The CPI in the United States is defined by the Bureau of Labor Statistics as "a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services."

The CPI is a statistical estimate constructed using the prices of a sample of representative items whose prices are collected periodically. Sub-indexes and sub-sub-indexes are computed for different categories and sub-categories of goods and services, being combined to produce the overall index with weights reflecting their shares in the total of the consumer expenditures covered by the index. It is one of several price indices calculated by most national statistical agencies. The annual percentage change in a CPI is used as a measure of inflation. A CPI can be used to index (i.e., adjust for the effect of inflation) the real value of wages, salaries, pensions, for regulating prices and for deflating monetary magnitudes to show changes in real values. In most countries, the CPI is, along with the population census and the USA National Income and Product Accounts, one of the most closely watched national economic statistics.

Read more about Consumer Price Index:  Introduction, Owner-occupiers and The Price Index, History

Other articles related to "price index, consumer price index, consumer prices, consumers, consumer, index":

Michael Boskin - Publications - Journal Articles
... "Indexing Social Security Benefits A Separate Price Index for the Elderly?" (with M ... Jorgenson), The Advisory Commission to Study the Consumer Price Index, 1995 ... "Consumer Prices, the Consumer Price Index and the Cost of Living," (with E ...
Teacher Retirement System Of Texas - History - Timeline
... to a 25% inflation “catch-up,” for retirees whose annuity-purchasing power lags behind the Consumer Price Index (CPI) ... Increase is designed to compensate for payment inequities and to pass along the second Consumer Price Index (CPI) “catch–up” increase ... This was the third Consumer Price Index (CPI) increase in recent years designed to help retirees and their beneficiaries catch up on what they had lost to inflation since ...
Consumer Price Index (South Africa)
... The consumer price index (CPI) is the official measure of inflation in South Africa ... One variant, the consumer price index excluding mortgage costs (CPIX), is officially targeted by the South African Reserve Bank and a primary measure that determines national ...
Consumer Price Index - Criticisms - Bias Due To Quality Improvement
... As a result, when consumers choose to buy higher-quality cars or computers, the CPI can increase despite the fact that lower-cost products are still available ... While this occurred because the consumer was able to afford higher quality products, the resulting CPI increase can be a sign of economic difficulty ... Additionally, the value to the consumer may increase by a greater factor than the cost, again resulting in an apparent decrease in purchasing power when measured in cost per car, as in the CPI ...
Minimum Wage In The United States - Prior U.S. Minimum Wages Laws
... per hour and all increases are designed to annually index to inflation ... Some politicians in the United States advocate linking the minimum wage to the Consumer Price Index, thereby increasing the wage automatically each year based ... Vermont and Washington have linked their minimum wages to the consumer price index ...

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